Affordable suburb tips for a starter?

Hi everyone,

This is my first post on the website so thanks for reading. I have saved 25k for a deposit on an investment property and currently live in Sydney so am thinking somewhere around here is the go (was considering Coffs Harbour for affordability, but locally is probably better for inspecting etc). I have been approved for a loan of around 250k (with 1st home buyers grant) or a bit less without. I am looking for a 2bed unit or a cheaper house in a suburb further out.

I would be very grateful if people could suggest a few suburbs in my price range to look. Sydney has hundreds of suburbs and I am trying to narrow down the ones a) in my price range and B) those suburbs likely to have good long term or short term prospects for growth. I have been looking around Parramatta (although that's a bit outa my range now), and considering down south towards campelbtown area.

Any suggestions or suburb tips are very much appreciated. I am planning on a buy and keep long term strategy.

Thankyou so much for reading

D
 
Suburb

Hi d

I bought an IP in Ambarvale (Campbelltown) area near the MacCarthur Shopping centre and the hospital and Uni.

Price 244K with rental 320 pw. (never vacant!)

Prices have gone up a little but have a drive around; there are still some in your price range; its quite a pleasant area (hint: my IP is around Georgiana St.)

Good luck
 
Hi Davross and welcome !

Agree with Virgo - try south west or even the west is a good area to get into at the moment. Look at suburbs around Mount Druitt, Kingswood, St Mary's, Penrith.

Rents are moving along pretty steadily so you should easily get over the 6 - 7% return.

Good luck and enjoy the ride !
 
Coffs is a slow market. Easy enough to get into, but hard to get out.

You could get an apartment in North Parramatta with a loan of that size... just make sure you bargain them down. :)
 
but locally is probably better for inspecting etc
D
Hi Davross and welcome to the forum.

Just on the inspecting point, don't get caught up in the thinking that closer is better mindset.

If you can find an area that will you more bang for your buck, yes you will have to travel there to inspect for purchase but once you have purchased, you don't have to inspect your IP on a regular basis. Once you get a few IP's under your belt, the novelty of looking at them (just to make sure they are still there, lol) wears off.

I'm not saying not to buy local, just pointing out that you shouldn't feel compelled to just for inspection purposes.

Regards
Marty
 
Agree with Marty. I wish I had followed such a notion 20 odd years ago and bought in other major cities when prices were just "too cheap" (Brisbane, Perth and Adelaide) compared with the two majors (Melbourne and Sydney).

These days, I rarely inspect my IP's. I find the more you go in person and meet the "nice tenants" the more they ask for. :rolleyes: Major repairs and issues of basic need such as heating, hot water, safe/secure and clean and waterproof dwelling is par for the course, however when they meet you sometimes the requests become petty. I rely on my PM's who inspect routinely and any major repairs or preventative remedies are undertaken post haste.

I'm not from Sydney, however if it were me I would follow the opinion of some here on the west (outer and south-west) and buy land (with an old house on it) that may be developed down the track. Find out from council in that area what may be achieved.

Whilst this has been my investing strategy over the years, it becomes more prudent in Sydney. They are running out of land. The cost to bring sites to the market with council contributions, state levies and what not is prohibitive to cost.....ergo buying as much infill land that is already within a suburb with decent amenity is liekly to serve you well. If you can get nearby to train (say within 1 to 1.5 km) and near shops, schools etc, so much the better.

Davross I suggest you scour the "Where to Buy" sub-forum and search for such western and south/west suburbs. Buy in places where they cannot make any more land. Failing that you could do worse than buy a 2 BR unit in Parramaatta or slightly closer in as had been mentioned by others.

Welcome to the forum :)
 
Hi d

I bought an IP in Ambarvale (Campbelltown) area near the MacCarthur Shopping centre and the hospital and Uni.

Price 244K with rental 320 pw. (never vacant!)

Prices have gone up a little but have a drive around; there are still some in your price range; its quite a pleasant area (hint: my IP is around Georgiana St.)

Good luck

Nice little IP by the looks Virgo.

How many bedrooms and block size is your place??
 
Ambarvale

Hiya

Just a tad below 600; 3 bedder, i have not done a single thing to it; the streetscape is very nice...used to have a "snobbish" attitude to anything West or SW of Sydney but hey....so far, it is chugging along very nicely; just settled on one more IP in Parramatta surrounds.....
 
So you've got a budget of high 200s. I'm also looking for a 1st IP around the 300k mark with 2 beds.

I reckon Westmead out to Toongabbie is pretty good value for money, they're up and coming areas. Lot of young hardworking families in those areas from what I've seen so far.

Newer places there are fetching 320/week rental which would cover a loan of about 210k at todays interest rates. Means I gotta stump up 90k myself up front and cover strata/water/council out of my own salary.

Just out of interest - a question to the pros out there how much deposit are you putting down on your IPs? 20%, less/more?

Also can't decide what to do with 300k - go 2 beds out west or an older 1 bedder closer to the city.
 
Hey everyone,

Thanks heaps for all the feedback! some great suggestions there. I am heading out to Campeltown area tomorrow to check out some units. Lot's of great feeback, im stoked. :)

Cheers all

D
 
Don't spend that amount on units in Campbelltown. You could get a house in Campbelltown. Some of the units in Campbelltown have a decent yield. Depends what you prefer.

You don't seem concerned about area. If you are getting the first home owners grant you do realise you need to live in it for 6 months??
 
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